EBITDA targets achievable for 2017, Deutsche Bank says

March 9, 2017

The consensus EBITDA forecasts for 2017 for Macau’s operators now look to be achievable for this year, after targets lacked harmony with gross gaming revenue growth throughout 2016, Deutsche Bank said in an analysis.

The firm said that previously, forecasts for EBITDA has failed to take account of the cost pressures stemming from the opening of new resorts that came onto the market.

“Subsequently, 2017 market EBITDA forecasts have come in, GGR growth has accelerated, and we now believe consensus EBITDA is achievable on current GGR forecasts.”

Deutsche Bank notes that VIP rolling chip volume rose 7.2 percent in 4Q, marking the first time the metric had been in positive territory since 1Q, 2014.

“We believe this growth rate has accelerated in the 1Q 17.”

In terms of market EBITDA share, the bank says Galaxy Entertainment was the clear winner last year, growing its share in every quarter. Both Wynn Resorts and Melco Crown also gained, though Las Vegas Sands and SJM Holdings lost ground, it said.

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